Steps in Planning

Planning is a course of action for the future. So, planning future action requires taking the appropriate first step. People must follow these instructions while creating a plan to ensure that it will proceed properly and help them reach their objectives.

• Analyze Opportunity
  • This is the initial stage of planning. Both the internal and exterior environments are analyzed in this step. The SWOT (strengths, weaknesses, opportunity, and threats) analysis is required by management to assess the company's changing external circumstances. It entails evaluating one's own strengths and weaknesses in light of potential possibilities, dangers, and uncertainties as well as what one is anticipated to gain in the future. Materials, organizational structure, machinery, politics, socio-cultural factors, etc. must all be considered during planning.
• Setting Goals
  • This is the actual starting point and also the first point of planning. Objectives must be clear, detailed and realistic in character. Each subordinate work unit should have its own objectives, followed by those for the entire enterprise. Goals shouldn't be overly idealistic or ambitious when they are being set. Realistic, precise, and unambiguous goals help people stay focused on what they are trying to achieve.
• Determination of Premises
  • Establishing premises comes next in the planning process after deciding on the goal. The anticipated environment, sometimes known as the expected environment, is referred to in planning premises. They contain predictions or suppositions about the future. Planning assumptions may be both external and internal, or both. A setting where we can physically see all the work done, such as the number of units sold, the amount of time available, the amount of capital invested, the cost per unit, etc. Intangible premises include things like a manager's disposition, goodwill, inspiration, and workforce morale. While internal premises encompass management, machines, money, materials, etc., external premises entail technical change, government policy, social culture, etc. In the work, they offer pertinent data and information.
• Determination of Alternatives
  • A determination of options is the next stage of planning. There are numerous alternate courses of action, particularly ones that are not changed right away. To accomplish the company aim or objectives, management must identify all of these choices. Management must gather and examine all pertinent data about it in order to discover all potential alternatives. Both primary and secondary sources of data can be used to get information.
• Evaluation of Alternatives
  • The evaluation of alternatives comes next in the planning process after the selection of options. This is the logical process to weigh the costs and benefits of each and every possibility. The predicted costs and advantages of each identified alternative are assessed and contrasted. Each option is investigated and assessed in terms of shared characteristics such available resources, risk, accountability, technology, needed time, expected return, etc. Tools that can be used to evaluate options include both qualitative and quantitative methods.
• Selecting a Course of Action
  • Choosing a path of action is the next step in planning. At this moment, the strategy is officially adopted. After weighing all of the available options, management decides on the best course of action or must determine the most appropriate course to take. Management must take into account previous decisions, the current environment, and potential future outcomes. As a result, it must take into account the diverse locations and settings of an organization.
• Formulation of Derivatives Plans
  • Formulating derivatives plans is the next stage of planning after choosing a course of action. Plans are created for each stage of the job in this step, and several auxiliary plans are created for each product, department unit, and activity. Such a plan aids in both carrying out the fundamental plan and achieving the organization's predetermined goals.
• Implementation of Plan
  • Implementing the plan comes next in the planning process after choosing a path of action. This stage converts the entire plan's procedure into an action. Plans must be made to do this, including communicating with subordinates who give the necessary training and direction, setting up resources such machinery, money equipment, etc., and conducting timely supervision and control of subordinates.
• Reviewing the Planning Process
  • ​​​​​​​The final stage of planning is this. The planner should be aware of the actual performance at this stage. It is the ongoing duty that the organization must do. Only in the right circumstances can management behave appropriately. In order to accomplish the organization's goals in accordance with the plan, the appropriate decision must be made at the right moment. Adopting the shifting corporate environment is also crucial.

Reference

Poudyal, Dr.Santosh Raj. Principles of management. Bhotahity,Kathmandu: Asmita Book publishers & Distributors(P)Ltd, 2011.